Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2015-16 Earnings Presentation
27 slides from Hindustan Unilever's earnings presentation, Jul 21, 2015
Slide 1: June Quarter 2015 Results Presentation
June Quarter 2015 Results Presentation – July 21, 2015 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar e
Slide 3: Agenda
Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 Looking Ahead 3
Slide 4: Clear and compelling strategy
Clear and compelling strategy Strategic framework Sustainable Living Plan Goals Consistent Growth Competitive Growth Profitable Growth Responsible Growth 4
Slide 5: Business environment remains challenging
JQ 2015 – Context Business environment remains challenging Market recovery yet to stabilize, particularly in Rural Deflationary trend in input costs, impacting price growth Competitive activity remains high 5
Slide 6: Deflationary trend in input costs
Deflationary trend in input costs PFAD Source: Bloomberg data and internal estimates 6 INR numbers arrived at by applying the average exchange rate of the quarter to the average USD cost of the commodity
Slide 7: Profitable volume-led growth sustained
JQ 2015 Profitable volume-led growth sustained Domestic Consumer reported growth at 5%, underlying* at 7% • Impact of phase out of Excise Duty benefits on topline -170bps • 6% underlying volume growth, broad based across segments • Negative price growth arising from lower input costs and phase out
Slide 8: Performance led by healthy volumes across segments
Performance led by healthy volumes across segments Reported Underlying growth % sales (before impact of phase out growth % of Excise Duty benefits) Soaps & Detergents 0 2 Personal Products 12 15 Beverages 9 9 Packaged Foods 12 12 Domestic Consumer 5 7 • Soaps and Detergents: Healthy underlying volum
Slide 9: Category Highlights
CATEGORY HIGHLIGHTS
Slide 10: Continued focus on innovations
Winning with Brands Continued focus on innovations 10
Slide 11: Impactful activation
Winning with Brands Impactful 360 activation FAL- Helping Women get Digital amplifies Offline activation Leveraging Occasions Online Bru-ing a cup of Lakme- ABCD 2 tie up Clinic Plus Print Innovation togetherness over Cricket 11
Slide 12: Building high quality content to engage with consumers
Winning with Brands Building high quality content to engage with consumers Content Day: 39 Content Partners briefed on 11 brands 300 +ideas in the first round content.ideas@unilever.com 12
Slide 13: Skin Cleansing: Volume led growth
Skin Cleansing Volume led growth Category performance led by premium soaps; mass segment slowing Dove delivers double digit volume growth; new ‘Hybrid’ variant introduced Liril launched with the ‘fresh is back’ proposition Actions being taken to stimulate mass segment growth Liquids clock
Slide 14: Home Care: Growth led by the premium segment
Home Care Growth led by the premium segment Laundry • Surf delivers broad based double digit growth with strong volumes • Rin growth led by bars; overall bars portfolio doing well • Wheel performance subdued, aggravated by a slowing mass market • Comfort registers another robust quarter on sustain
Slide 15: Skin Care: Volume led double digit growth
Skin Care Volume led double digit growth FAL, Ponds, Lakme and Vaseline deliver double digit growth • FAL continues to do well; encouraging response to new BB Cream • Pond’s growth led by premium skin lightening and facial cleansing • Lakme buoyed by CC cream, Perfect Radiance and new innovations
Slide 16: Hair Care: Strong volume led double digit growth momentum sustained
Hair Care Strong volume led double digit growth momentum sustained Broad based double digit growth across brands and formats • Dove growth further accelerates; launch of Dove Oxygen Moisture • Sunsilk performance led by impactful activation • Clinic Plus continues to do well post relaunch • TRESem
Slide 17: Oral Care: Growth led by Close Up
Oral Care Growth led by Close Up Close Up delivers double digit growth, driven by impactful activation and micro marketing ‘Diamond Attraction’ continues to do well Pepsodent led by Gum Care and Clove and Salt variants • ‘Clove and Salt’ extended nationally Phase out of Excise Duty benefits
Slide 18: Color Cosmetics: Innovation led double digit growth
Color Cosmetics Innovation led double digit growth Lakme sustains strong performance led by premium make up • Growth broad based; Core, Absolute and 9 to 5 grow in double digit o Absolute Sculpt range continues to drive trends • Exciting launch of Lakme Absolute Vinyl eye liner • Shade additions m
Slide 19: Beverages: Broad based growth across brands
Beverages Broad based growth across brands Tea delivers double digit growth with healthy volumes • Driven by strengthened brands, sharper activation and micro marketing • Red Label accelerates its volume led growth momentum • Natural Care portfolio continues to do well • Green Tea registers a stro
Slide 20: Packaged Foods: Seventh successive quarter of double digit growth
Packaged Foods Seventh successive quarter of double digit growth Kissan delivers one of its strongest quarters • Growth accelerates across both, Ketchups and Jams • 2 new Ketchup variants launched under ‘Twist’ Knorr grows despite sharp slowdown in market post Noodles issue • Led by Instant Soup
Slide 21: Packaged Foods: Driving growth through market development
Packaged Foods Driving growth through market development Unlocking everyday relevance Driving adoption and trials Sharper in-market execution 10,000 Perfect Visibility Outlets!
Slide 22: Pureit: Strengthening category leadership
Pureit Strengthening category leadership Pureit continues to grow ahead in a challenging market Premium innovations drive growth Performance led by Modern Trade and Pureit Perfect Stores 22
Slide 23: Results summary
JQ 2015 Results summary Rs Crores Particulars JQ'14 JQ'15 Growth % Net Sales 7,571 7,973 5 PBIT 1,250 1,432 15 PBIT margin (%) 16.5 17.9 140 bps PAT bei 1,020 1,053 3 Net Profit 1,057 1,059 - Reported Domestic Consumer growth at 5%, underlying* at 7% o 6% underlying volume growth, broad based acro
Slide 24: PBIT to Net Profit
JQ 2015 PBIT to Net Profit Rs Crores Particulars JQ’14 JQ’15 Growth % PBIT 1250 1432 15 Add : Other Income 202 109 Less : Finance Costs 6 0 Exceptional Items – Credit / (Charge) 40 10 PBT 1485 1550 4 Less : Tax (428) (491) Net Profit 1057 1059 - • Other income includes - • Interest, dividend and net
Slide 25: Results summary
JQ 2015 Results summary Profitable volume-led growth sustained • Reported Domestic Consumer growth at 5%, underlying* at 7% o 6% underlying volume growth, broad based across segments • Competitive investments (A&P up 22%, +200 bps) • PBIT margin expands +140 bps o Lower COGS, improving operating eff
Slide 26: Looking Ahead
Looking Ahead Near term – • Improved market growth dependent on Rural • Soft commodity costs expected to remain – resultant deflation in select categories • Impact from phase out of fiscal benefits to continue • HUL: Focus on sustaining profitable volume led growth Mid-long term - • FMCG outlook
Slide 27: For more information & updates
For more information & updates VISIT OUR WEBSITE HUL INVESTOR APP 27
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